Latest Ratios: P/E Ratio -853.6x · EV/EBITDA 1024.8x · ROE -8.2%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $87.5B | $68.7B | $36.8B | $27.8B | $14.8B | $41.1B | $22.8B | $5.1B | — | — |
| Enterprise Value | $90.3B | $71.4B | $38.1B | $29.1B | $16.1B | $42.0B | $23.1B | $5.0B | — | — |
| P/E Ratio → | -853.62 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 40.36 | 31.69 | 22.02 | 21.42 | 15.13 | 62.57 | 52.85 | 17.84 | — | — |
| P/B Ratio | 59.11 | 47.08 | 35.14 | 36.41 | 23.64 | 50.34 | 27.88 | 7.06 | — | — |
| P/FCF | 269.80 | 211.80 | 188.15 | 232.54 | — | — | — | — | — | — |
| P/OCF | 131.21 | 103.01 | 96.64 | 109.20 | 119.37 | 635.29 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 32.96 | 22.81 | 22.46 | 16.54 | 64.06 | 53.59 | 17.39 | — | — |
| EV / EBITDA | 1024.85 | 811.27 | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 220.30 | 194.88 | 243.83 | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 74.4% | 74.4% | 77.3% | 76.3% | 76.1% | 77.6% | 76.6% | 77.9% | 77.4% | 78.7% |
| Operating Margin | -9.4% | -9.4% | -9.3% | -19.3% | -25.5% | -22.6% | -25.6% | -41.2% | -44.1% | -7.2% |
| Net Profit Margin | -4.7% | -4.7% | -4.7% | -14.2% | -19.8% | -39.7% | -27.7% | -36.9% | -45.2% | -8.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -8.2% | -8.2% | -8.7% | -26.5% | -26.9% | -31.9% | -15.5% | -34.6% | — | — |
| ROA | -2.2% | -2.2% | -2.6% | -6.9% | -7.8% | -13.9% | -10.8% | -18.7% | -37.8% | -6.6% |
| ROIC | -4.6% | -4.6% | -5.2% | -9.2% | -9.8% | -7.6% | -9.6% | -37.8% | — | — |
| ROCE | -6.6% | -6.6% | -6.6% | -11.4% | -11.6% | -8.9% | -11.1% | -24.0% | -45.5% | -7.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.54 | 2.54 | 1.40 | 1.88 | 2.53 | 1.59 | 0.52 | 0.01 | — | — |
| Debt / EBITDA | 42.02 | 42.02 | — | — | — | — | — | — | — | 4.47 |
| Net Debt / Equity | — | 1.89 | 1.26 | 1.77 | 2.20 | 1.20 | 0.39 | -0.18 | — | — |
| Net Debt / EBITDA | 31.30 | 31.30 | — | — | — | — | — | — | — | -5.53 |
| Debt / FCF | — | 8.50 | 6.73 | 11.29 | — | — | — | — | — | — |
| Interest Coverage | -9.58 | -9.58 | -12.64 | -40.43 | -47.60 | -4.46 | -4.41 | -102.43 | -85.78 | -10.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.98 | 1.98 | 2.86 | 3.50 | 4.74 | 6.77 | 7.99 | 8.22 | 3.21 | 3.39 |
| Quick Ratio | 1.98 | 1.98 | 2.86 | 3.50 | 4.74 | 6.77 | 7.99 | 8.22 | 3.21 | 3.39 |
| Cash Ratio | 1.74 | 1.74 | 2.34 | 2.95 | 4.15 | 6.31 | 7.30 | 7.59 | 2.62 | 2.70 |
| Asset Turnover | — | 0.36 | 0.51 | 0.47 | 0.38 | 0.28 | 0.31 | 0.35 | 0.65 | 0.83 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 68.36 | 72.87 | 72.99 | 58.70 | 56.51 | 56.76 | 45.69 | 50.59 | 41.08 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 0.4% | 0.5% | 0.5% | 0.4% | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $348M | $341M | $334M | $326M | $312M | $300M | $300M | $237M | $251M |
High stock-based compensation dilution
According to current market data, the company trades at a P/S ratio of 38.65, a valuation that suggests investors are pricing in significant long-term platform dominance rather than near-term earnings, especially when compared to the more modest multiples assigned to legacy infrastructure peers like Akamai Technologies.
The elevated forward EV/EBITDA of 105.97 indicates that the market expects aggressive margin expansion as the company scales its serverless and AI inference offerings. This valuation premium appears to hinge on the assumption that the company will successfully transition from a security utility to a foundational cloud compute provider, a shift that warrants careful monitoring of future revenue growth rates.
Based on reported financial figures, the company's ROIC has remained consistently negative, hovering around -1.1% in 2026Q1, which reflects a strategic choice to prioritize rapid global infrastructure deployment and aggressive R&D spending over the immediate generation of positive returns on invested capital for shareholders.
The persistent negative ROIC suggests that the company is currently in a high-intensity growth phase where the cost of capital deployment exceeds the immediate returns generated by the network. Investors should monitor whether the recent pivot toward AI-ready hardware begins to improve capital efficiency or if it further suppresses returns by increasing the depreciation burden on the balance sheet.
As reported in recent quarterly filings, the company's asset turnover ratio remains low at 0.10, indicating that the massive investment in global network infrastructure has yet to be fully optimized for revenue generation relative to the total capital base deployed across the firm's international operations.
The DSO of 57 days suggests a stable collection cycle, yet the variability in DPO, which shifted from 35 to 78 days over the last ten quarters, implies that the company is actively managing its cash conversion cycle to preserve liquidity. This fluctuation may indicate shifting leverage with suppliers as the company scales its hardware procurement requirements for new edge compute services.
According to the latest balance sheet data, the company's debt-to-equity ratio has risen to 2.31 as of 2026Q1, a trend that reflects the firm's reliance on external financing to fund its capital-intensive global network expansion while maintaining a defensive liquidity position in a volatile interest rate environment.
While the interest coverage ratio remains negative, the company's ability to maintain a current ratio of 1.96 suggests that liquidity is not an immediate concern for debt service. However, the rising debt load warrants further investigation into the long-term sustainability of this capital structure if the anticipated growth in enterprise revenue fails to materialize as expected.
The P/E ratio is frequently misapplied to this business model, as the company's heavy reliance on stock-based compensation and aggressive reinvestment in R&D renders GAAP earnings a poor proxy for the underlying cash-generative potential of its global edge network and subscription-based revenue stream.
Analysts should instead focus on free cash flow margins and RPO growth to assess the true health of the business, as these metrics better capture the company's ability to convert its massive user base into long-term enterprise value. Relying on P/E multiples obscures the significant non-cash expenses that are essential to the company's talent retention and competitive strategy.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying NET stock.
Cloudflare, Inc.'s current P/E ratio is -853.6x. This places it at the 50th percentile of its historical range.
Cloudflare, Inc.'s current EV/EBITDA is 1024.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Cloudflare, Inc.'s return on equity (ROE) is -8.2%. The historical average is -21.7%.
Based on historical data, Cloudflare, Inc. is trading at a P/E of -853.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Cloudflare, Inc. has 74.4% gross margin and -9.4% operating margin.
Cloudflare, Inc.'s Debt/EBITDA ratio is 42.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.